Éamon Ó Cuív (Galway West, Fianna Fail)

The facts of the case are that Údarás was severely extended because of the lack of its own income this year. It is an important principle for me, although I do not know if the Deputy holds the same view, that Údarás should be able to meet its commitments for grant payments and so on as they fall due. That was not the situation in the middle of the year. I am not blaming the Department of Finance. My Department and I told Údarás not to sanction any further grants until we were satisfied that the sanctioning of further grants would not create an impossible burden on Údarás finance. The collapse of its income has put its capital budget under severe strain.

Permission was given in the autumn to approve grants to the amount of €2 million and again in November to the amount of €1.89 million, which is almost €4 million in total. We are asking Údarás to prioritise grants that would have an immediate benefit. I have suggested that small grants be diverted to Meitheal Forbartha na Gaeltachta, MFG, which has a great deal of money that it has not approved, or a great deal of permission that it has not used. This is the sensible way to proceed.

It is very important for Údarás, at a time when money is scarce, not to get involved in forward building but to concentrate on projects that will yield an immediate return in jobs. If a building is needed as part of a particular project it may go ahead with that if jobs will be created immediately. That is the priority. We are working with them month by month to ensure permission is given for programmes from which jobs can be created and products launched. However, each Department must live within its capital envelopes. The control is being exercised by my Department in this regard.

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